Analyst’s Warning Sign Stings General Electric (GE)
Shares of GE recorded their 20th decline in the last 23 trading sessions, after Gordon Haskett analyst John Inch indicated that the bankruptcy of helicopter lessor Waypoint Leasing could summon more trouble for GE’s finance arm, GE Capital. GE’s shares dropped by ~ 4.5% on Monday after Inch’s warning became public.
According to Inch, Waypoint's excessive capacity and muted demand -- owing largely to the energy industry’s limited rotorcraft usage due to distress in the offshore oil and gas sector -- has further enhanced its struggles.
GE had acquired Milestone Aviation Group in 2014 for $1.8 billion, on the assumption that there wouldn’t be any write-down of the goodwill. But now with the probability of a writedown in the Milestone assets, it could prove extremely material for GE Capital, especially when the business accounts for ~75% of GE Capital’s $984 million goodwill as reported in the third quarter filling.
In reply to this warning, GE in an emailed statement to Bloomberg said that Milestone continues to perform well for the company and is expected to remain profitable in both 2018 and 2019. GE further added that serving across different industries, the current fleet utilization for Milestone stands at around 90% and is expected to earn $1.2 billion in 2018.
Aroon Indicator for GE shows an upward move is likely
GE's Aroon Indicator triggered a bullish signal on July 01, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 377 similar instances where the Aroon Indicator showed a similar pattern. In of the 377 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 25, 2025. You may want to consider a long position or call options on GE as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GE advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GE moved out of overbought territory on July 01, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where GE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GE turned negative on July 01, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.680) is normal, around the industry mean (9.986). P/E Ratio (38.940) is within average values for comparable stocks, (62.376). GE's Projected Growth (PEG Ratio) (9.122) is very high in comparison to the industry average of (2.359). Dividend Yield (0.005) settles around the average of (0.018) among similar stocks. P/S Ratio (6.766) is also within normal values, averaging (9.333).
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General Information
a manufacturer of products for the generation, transmission, distribution, control and utilization of electricity; manufactures aircraft engines and medical equipment
Industry AerospaceDefense
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